How the Digital Evolution of Customer Behaviour Is Reshaping Insurance

By Rachael Laurie, Tempcover CCO


Insurance has an unenviable reputation for providing a confusing and frustrating customer experience. This is often due to complicated policies and cumbersome, time-consuming processes.


Digitally savvy consumers will buy from businesses that offer a convenient and straightforward user experience at the best value. Consumer loyalty is no longer a guarantee, and this trend has only accelerated with the onset of COVID.


Insurance needs to stay one step ahead of the latest digital consumer trends to pair the most fit-for- purpose product or service with a positive customer experience.


It starts with customer insights


Rapid market movements and changes in customer behaviour are driving a step-change in the collection, assimilation and implementation of customer insight.


Data from the Department for Transport revealed that public transport usage dropped by as much as 90% early in lockdown in favour of private vehicles, and is still currently down compared to pre-COVID levels. Market studies with linear decision making based on established insight had to be replaced by rapid in-the-moment assessment of changing customer demands.


In a time where speed is king, this was achieved through greater utilisation of light-touch agile methods and the ability to make robust, intuitive marketing decisions from imperfect data. It’s not about perfection, but about keeping pace with a rapidly evolving consumer landscape.


Ongoing and proactive customer engagement is key


Customer engagement, as a means of understanding and fulfilling changing customer demands, is crucial. Organisations need to dial up their customer engagement capability to stay close to customers, differentiate responses and act accordingly.


An example is the motor industry’s move to remote selling of vehicles or sharing the profit burden by offering preferential promotions to encourage customers to part with a share of their reducing wallet.


It’s about going further than a pre-canned COVID response, being more relevant to the customer and meeting the diversity of their needs – on their terms and by their side. When the customer wins, the business wins too.


A well-run customer engagement programme can lead to improved conversion rates, for example, by converting previously non-purchasing enquirers into paying customers, or one-time buyers into multi-buyers. Encouraging repeat customers to come direct via owned media can also drastically reduce the costs of paid search channels.


The best products and services are co-created with direct customer input


Even the best user engagement programme will be ineffective if customers are not satisfied with the product or service. At Tempcover, we involved customers in co-creating and testing a fully-enhanced digital user experience based on their demands and expectations.


A simplified user journey now allows our customers to easily access our service offering online and interact with us seamlessly. Our super-agile digital offering also brings fully comprehensive temporary car insurance straight to customers’ fingertips: a simple policy confirmation process gets customers on cover and driving within 90 seconds.


Our TrustPilot scores speak for themselves about our customer advocacy: 81% of over 18,000 reviews receive an ‘Excellent’ 5/5 rating.


Looking to digital marketers to navigate the future


The digital marketer’s role in understanding the insurance industry, keeping up with change and grasping evolving customers’ needs grows ever important. Real-time insights and predictions are crucial to offering a tailored response to those needs and building and growing relationships with customers.


Organisations demonstrating their ability to lead change by evolving and embracing dynamic digital methods as the core of their strategy will be rewarded with the greatest opportunities even in challenging circumstances. Speed, agility and pragmatism will set successful organisations apart from those still relying on traditional methods.